176.91 -2.72 (-1.54%) Sell

FLT is a falling knife, continues to bleed every investor trying to catch it

13 min read

FLEETCOR TECHNOLOGIES INC was among the worst performers today. It fell by -1.54% to close at 176.91. During the last week it fell by -4.82% and saw a maximum drawdown of -4.82%.

[Themes containing FLT]

FLT is currently in a bearish trend. The current bearish signal has generated a profit of +19.94% for investors in the last three months.


FLT has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 3 May, 2017 to 20 Jun, 2018. Over the last 2 years 11 months and 10 days, FLT underperformed the SP500 index on 49% days. Which indicates that on days FLT underperforms the SP500 index, it's performance is marginally worse than on the days it outperforms the SP500 index.

FLT returned losses on 64% days in the last three months. During this time, it delivered on average -0.31% per day. It delivered it's best daily return of +7.98%, during this period, on Wednesday, 31 Oct, 2018. The longest stort-term trend during this period was 8 losing days, which started on 4 Dec, 2018 and ended on 14 Dec, 2018. This bearish trend lost -10.23% of investor capital.

During the last year FLT had 6 profitable months and 6 loss making months. FLT returned profits in fewer months than SP500 index. FLT was also a more risky investment than SP500 index as it's worst month in the last year, Oct 2018, returned -11.51% compared to -7.28% returned by SP500 index in Oct 2018. FLT had a longer winning streak of losing months than SP500 index. It went down in 3 straight months (from Oct 2018 to Dec 2018) during which period it delivered -23.35%. It is interesting to note that both FLT and SP500 index significantly outperform during months when quarterly/annual results are announced.

How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case.
-- Robert G. Allen

FLT is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in FLT's volatility from 17 Sep, 2018 to 31 Oct, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that FLT has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

SP500 index has more chance of extreme outcomes than FLT. Therefore, SP500 must receive a lower allocation than FLT in your portfolio. SP500 index usually has shorter drawdown period than FLT.

Based on your interest in FLT you may find it interesting to know that ICPT and GNK are highly volatile and therefore risky. Investors should consider limiting their exposure to these instruments (because of their volatile nature).

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